Biotech firm cuts IPO range

MattAndrejczak

WASHINGTON (CBSMW) --Due to weak demand for new stock offerings, Genomic Solutions Inc. slashed its initial public offering price of “callable stock” by as much as 47 percent on Monday.

Ann Arbor, Mich.-based Genomic Solutions (GNSL) said it plans to price 7 million shares around $10 to $12 per share. The company had originally sought to sell the stock in the $17 to $19 per share range, according to documents filed with the Securities and Exchange Commission.

Warburg, Dillon Read LLC is the lead underwriter for the deal.

Genomic, which develops and sells instruments and software for the study of genes and proteins, said it intends to use the net proceeds of the $84 million IPO for general corporate purposes and possible acquisitions.

Under the terms of the offering, Genomic said it might require all holders of its “callable” stock to sell their shares back to the company two years following the completion of the deal.

Genomic, which posted a 1999 loss of $11.1 million on revenue of $12.1 million, has applied for the Nasdaq ticker “GNSL.”

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